SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 10, 2003
LIBBEY INC.
(Exact name of registrant as specified in its charter)
Delaware 1-12084 34-1559357
(State of incorporation) (Commission File Number) (IRS Employer
identification No.)
300 Madison Avenue
Toledo, Ohio 43604
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (419) 325-2100
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ITEM 5. OTHER EVENTS
On January 10, 2003 Libbey Inc. (the "Company") through a press release
announced that it will increase its regular quarterly dividend from 7.5 cents
per share to 10 cents per share in 2003. This 33.3 percent increase will take
the annual dividend from 30 cents per share to 40 cents per share, resulting in
an annual dividend yield of 1.5% based on the closing price on January 9, 2003.
On January 10, 2003, the Board of Directors declared a quarterly cash dividend
of 10 cents per share to be paid on March 4, 2003, to shareholders of record as
of February 11, 2003. As of January 9, 2003, Libbey had 14,631,277 shares
outstanding.
The Company also announced that it would expect to begin a pattern of regular
increases in dividends. However, the declaration of future dividends is within
the discretion of the Board of Directors of the Company and will depend upon,
among other things, business conditions, earnings and the financial condition of
the Company.
On January 13, 2003 the Company through a press release announced a meeting with
security analysts and investors in Chicago, IL, and reviewed recent acquisitions
and operational strategies and plans to achieve sales, net income and cash flow
growth in 2003.
The Company confirmed that the recent acquisitions of Traex and Royal Leerdam
are expected to add $69 to $73 million to revenues in 2003. Expectations are for
the acquisitions to be accretive in 2003 by $0.15 to $0.20 per diluted share.
Capital expenditure programs targeted to reduce costs in Libbey's domestic
facilities were also reviewed. Libbey plans to make investments of $30 to $35
million over the next three years in new equipment devoted to automating
processes and improving efficiencies. Combined with regular maintenance and
repair capital expenditures and other investments, total capital expenditures
are expected to average $30 million in each of the next three years. Investments
in automating inspection processes, ware handling and packaging of Libbey's
glassware and other efficiency improving investments are expected to generate $2
million in savings in 2003, growing to $4 to $5 million of annual savings by
2005.
Results for the fourth quarter and full year 2002 are expected to be announced
on or about February 6, 2003. Management commented that the fourth quarter
should result in a sizable increase in profits and was characterized by:
[ ] a solid sales performance in both the foodservice and retail channels of
distribution, while sales to industrial customers remained soft.
[ ] higher maintenance and employee benefit costs negatively impacted gross
profit margin, partially offset by lower selling, general and
administrative expenses.
These factors should result in diluted earnings per share in the fourth quarter
in the range of $0.53 to $0.55, or an approximate 20 percent increase over the
fourth quarter of 2001.
Total diluted earnings per share including Traex and Royal Leerdam for 2003 are
expected to be in the range of $2.55 to $2.60, as compared to $1.79 to $1.81 in
2002. Excluding the expenses associated with abandoned acquisitions in 2002,
full year diluted earnings per share in 2002 are expected to be in the range of
$2.34 to $2.36.
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The Company also reviewed its recent announcements on an authorization to
repurchase up to 2.5 million shares and the 33% increase in dividend rate to
$0.10 per quarter. While the decision to increase the dividend was independent
of recently announced proposals to eliminate taxation on dividend income, such
an elimination would be one of the factors the Company would consider in the
size and timing of future increases in dividend rates.
(c) EXHIBITS
Exhibit
No. Description
------- -----------
99.1 Text of press release dated January 10, 2003.
99.2 Text of press release dated January 13, 2003.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
LIBBEY INC.
Registrant
Date: January 14, 2003 By: /s/ Arthur H. Smith
-------------------- -----------------------------------------
Arthur H. Smith
Vice President, General Counsel and Secretary
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EXHIBIT INDEX
Exhibit No. Description Page No.
----------- ----------- --------
99.1 Text of press release dated January 10, 2003 E-1
99.2 Text of press release dated January 13, 2003 E-3